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Rates of Tax.

Estates of decedents, resident or non-resident, are subject to a tax equal to the sum of the following percentages of the value of the net estate: А



Tax on Sep- Total Tax

Rate arate Amounts on Amounts Net Estate

of Tax

in Column C in Column B I to $ 50,000 i.e. $ 50,000

1% $ 500 $ 500 50,000 150,000 100,000


2,500 150,000 250,000 100,000 3%


5,500 250,000 450,000 200,000


13,500 450,000 750,000 300,000


31,500 750,000 1,000,000 250,000


51,500 1,000,000 1,500,000 500,000 10%


101,500 1,500,000 2,000,000 500,000 12% 60,000 161,500 2,000,000 3,000,000 1,000,000


301,500 3,000,000 4,000,000 1,000,000 16% 160,000 461,500 4,000,000 5,000,000 1,000,000 18% 180,000 641,500 5,000,000 8,000,000 3,000,000 20% 600,000 1,241,500 8,000,000 10,000,000 2,000,000

440,000 1,681,500 more than 10,000,000


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A specific exemption of $50,000 is allowed in computing the net estate of a resident decedent before these taxes apply. This exemption is not allowed in the case of a non-resident decedent.

The Estate Tax does not apply to the transfer of the net estate of any person who dies from injuries received or disease contracted in line of duty while serving in the United States military or naval forces in the war against Germany, or of any citizen of the United States whose death is the result of injuries received or disease contracted in line of duty while in the military or naval service of any other country associated with the United States in the war, either before or after our entrance into the conflict. Any tax which has been collected upon such a transfer shall be refunded.

Gross Estate.

The value of the gross estate is determined by including the fair market value, at the time of death, of all the decedent's property, real and personal, tangible and intangible, wherever situated, to the extent provided in Section 402 of the Law. (See page 105.)

The entire proceeds of insurance policies made payable to the decedent's estate or his executor or administrator is taxable. This includes death benefits paid by fraternal organizations and insurance taken out to provide funds to meet the estate tax or any other taxes or charges enforceable against the estate. Insurance payable to named beneficiaries is exempt up to $40,000. For example, if the decedent left life insurance payable to three beneficiaries in amounts of $10,000, $40,000 and $50,000 (total $100,000), the amount of $60,000 would be taxable.

Stock of a domestic corporation, bonds actually within the United States, and moneys due on open accounts by domestic debtors are regarded as property within the United States in the case of a non-resident decedent. On the other hand, insurance money received upon the life of a non-resident decedent, and deposits with a domestic banking organization by a non-resident who was not engaged in business in the United States at the time of his death, are not regarded as property within the United States.

Net Estate.

The net estate of a resident is determined by deducting from the gross estate the items allowed under Section 403 (a); of nonresidents by deducting the items allowed under Section 403 (b). These deductions include, in general terms, debts, funeral and administration expenses, gifts for charitable, educational, religious and like purposes; casualty and theft losses, not covered by insurance, during the settlement of the estate; and the value of any property which formed part of the gross estate within the United States of any person who died within five years before the death of the decedent, where such property can be identified as having been received by the decedent from such prior decedent by gift, bequest, devise or inheritance.

Deductions in the cases of non-residents are allowed only if the executor includes in the return the value, at the time of death, of that part of the gross estate outside of the United States. Income taxes on income received after decedent's death are not proper

deductions nor, except in a few cases, are inheritance taxes imposed by State laws deductible.

Executor Must File Return.

The executor or administrator of an estate, within two months after qualifying as such-or, if there is no executor or administrator, anyone in actual or constructive possession of any property of the decedent, within two months after the death-must notify the Collector of Internal Revenue, and, under prescribed regulations, make a return:

(a) In all cases where the gross estate at the time of death exceeds $50,000.

(b) In the case of every non-resident any part of whose gross estate is in the United States. Personal Liability of Executor.

The executor is personally liable for the payment of the estate tax to the amount of the full value of all assets of the estate which at any time have come into his hands. After filing a return for the estate, he may make written application to the Commissioner for determination of the amount of the tax and discharge from personal liability. The Commissioner has one year after he receives the application in which to release the executor from personal liability for any additional tax. Payment of Tax.

The tax is due one year after the date of death, but if the Commissioner finds that payment in that time would impose undue hardship on the estate, he may grant an extension up to three years from the due date. If the tax is not paid within a year and six months after the date of death, interest at the rate of 6 per cent annually from the end of the first year shall be added, irrespective of any extension. The tax is payable by the executor, and, so far as is practicable and unless otherwise directed by the decedent's will, is to be paid out of the estate before its distribution.

Medium of Payment.

The Estate Tax may be paid with United States bonds or notes bearing interest at a rate higher than 4 per cent, provided they were owned by the decedent continuously for at least six months before his death and constituted a part of his estate at death. They are receivable by the Government at par plus accrued interest.

Checks in payment of the Estate Tax need not be certified if they are collectible at par.

Title VIII, Sections 800-802, Revenue Act, 1921

Rate of Tax.

A tax of one cent for each ten cents or fraction thereof paid for admission to any place, including admission by season ticket or subscription, must be paid by the person paying for the admission, except where the admission charge does not exceed ten cents, in which case no tax is imposed.

Additional Tax.

Where a ticket to a place of amusement is sold at a place other than the box-office, a tax of 5 per cent is levied on the amount of the excess charged for the ticket over the sum of the box-office price and the 10 per cent tax noted above, provided the amount of the excess is not more than 50 cents. If the excess is more than 50 cents, the additional tax is 50 per cent of the amount of the excess.

Where tickets to places of amusement are sold at more than the established price by proprietors of the amusements or their employees, the additional tax is 50 per cent of the excess.

Reduced Rates and Free Admissions.

Where persons are admitted at reduced rates, the tax is upon the actual amount paid and not on the full admission price. No tax is imposed on free admissions.

Boxes or Seats for Permanent Use.

In lieu of the tax mentioned in paragraph 1 above, there is levied on the lessee or holder of boxes or seats for permanent use a tax equivalent to 10 per cent of the amount for which similar boxes or seats are sold for each performance at which the box or seat is used or reserved.


Where the price of admission is included entirely or in part in the amount paid for refreshments, services, etc., as in cabarets, roof-gardens or similar entertainments, a tax of 172 cents is imposed for each ten cents or fraction thereof of the admission price. The admission price in such cases is deemed to be 20 per cent of the amount paid for refreshments, service, etc.

Admissions not Subject to Tax.

No tax is imposed where all the proceeds of the entertainment are used for the purposes specified in Section 800 (b) of the Act. (See page 116.)

Requirements Applicable to Tickets.

When tickets or cards of admission are used, the price at which sold, together with the name and address of the vendor, if sold other than at the ticket office of the place of amusement, must be printed, stamped, or written on that part of the ticket or card which is taken up by the management of the place of amusement. Failure to comply with this provision of the law is punishable by a fine of $100.

DUES Dues or membership fees, in social, athletic or sporting clubs, where the active resident annual dues are more than $10, are subject to a tax of 10 per cent. Initiation fees of such clubs are subject to a tax of 10 per cent;

(1) if the fee is more than $10, or,

(2) if the annual dues of an active resident member exceed $10. Life Membership.

A life member is taxed annually at the same time, and for the same amount as an active resident annual member. Dues not Subject to Tax.

Dues of fraternal societies operating under the lodge system, certain labor organizations, the Y. M. C. A. and similar associations, are exempt from tax.


* Title IX, Sections 900–906, Revenue Act, 1921 Manufacturers' Excise Tax.

Taxes are imposed against the manufacturer, producer or importer, on the selling price of the articles listed below, at the following rates: Article

Tax Automatic slot-device vending machines..

5% Automatic slot-device weighing machines..

10% Automobile trucks and automobile wagons (including tires,

inner tubes, parts and accessories, etc., sold on or in con-
nection with the machine).

3% Automobiles and motorcylces (except those mentioned

above), including tires, inner tubes, parts and acces-
sories, etc., sold on or in connection with the machine.. 5%

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